The reason why the AS/AD model does not depend upon the concepts of substitution and opportunity cost is that:
A)in groups, people do not make the same choices as when they are alone.
B)the AS/AD model considers total output. There are no goods to substitute.
C)the AS/AD model considers the effects of other countries' decisions.
D)other things remain constant in the AS/AD model.

Question

Quizplus · Accepted Answer

The AS/AD model (Aggregate Supply/Aggregate Demand) focuses on the total output of an economy rather than individual goods and services. Therefore, it does not directly involve the concepts of substitution and opportunity cost, which are more relevant to decisions about specific goods or services.

The Reason Why the AS/AD Model Does Not Depend Upon